Can You Apply For A Home Renovation Loan Online ? According to a report, demand for home loans in India has risen by 26% during the first half of 2021. This demand can be attributed to the need for private living space among millenials.
However, home loans can only fulfill the purchasing need; individuals depend on savings or disposable income to bear the maintenance cost. This practice can be problematic for future endeavors.
In this regard, one can opt for a house renovation loan that covers refurbishing needs, such as painting, remodeling, interior decoration, etc.
How to apply for a house renovation loan?
Individuals can follow these steps to make a house renovation loan application:
Step 1: Visit a preferred lending institution and click on home renovation loan from the product tab
Step 2: Fill the application form with personal and professional details
Step 3: Select the loan tenor and loan amount for instant approval
Step 4: An applicant needs to wait for a representative to get in touch
Step 5: The loan amount will be disbursed to the account after document verification.
Individuals can gain substantial funds to give their home a makeover with an affordable home improvement loan by fulfilling the mentioned steps.
Additionally, one needs to check certain factors to make an informed decision regarding borrowing.
Factors influencing home renovation loan
Potential borrowers need to check these factors before making an application for a house renovation loan:
- Loan amount
Deciding on the loan amount is a crucial step in availing of a home loan. This amount will influence the repayment obligations. Hence, a responsible borrower must evaluate the expense related to the renovation.
Based on the expenses, an individual should make a loan application. Opting for a high loan amount or excess can increase an individual’s loan burden, leading to defaults. This can again deteriorate the credibility and create issues in future loan approvals.
Hence, an individual opting for a home renovation loan or instant personal loan for salaried should determine the fund requirement and approach a lender suitably.
- Eligibility
Lenders set eligibility parameters to assess an applicant’s reliability and repayment capability. Ideally, the criteria against a personal loan for home renovation are simple and easy to fulfill.
Some common requirements include-
- Age- A potential borrower needs to fall in the age bracket of 20 to 60 years
- CIBIL score- An individual needs to maintain a CIBIL score of 750 and above
- Employment- Applicants must be employed in an MNC, private or public company with a stable income.
- Residency- Individuals must have Indian residency.
Potential borrowers can check a lending institution’s website or download personal loans app to find relevant details on the loan application. This will again help streamline the entire process.
- Documentation
Potential borrowers need to submit specified documents to a lender for home loan approval. These papers include-
- Employee ID card
- KYC papers
- Bank statement of salary account for at least three months
- Salary slips of the preceding two months.
Individuals should know that lenders can ask for additional documents depending on their policy.
- Interest rate
Applicants should check the interest rate levied on the said credit form before making a Quick Loans Online application. This factor decides the repayment obligations.
Hence, an individual should opt for a lender levying affordable interest rates on home renovation loans. This will help them initiate healthy savings and make timely repayments.
A potential borrower can check the different lending institution’s websites and compare the variables to find the one offering the best offers and better services.
For instance, leading lenders like Bajaj Finserv provide pre-approved offers to reliable borrowers. These offers make the loan application quick and hassle-free. Check your pre-approved offer by entering your name and contact number.
- Repayment tenor
Apart from interest rate and loan amount, the chosen tenor also impacts repayment obligations. Individuals should assess their financial strength and opt for a suitable tenor before making a personal loan for a home renovation application.
For instance, opting for a long tenor reduces the EMI but increases the interest outgo. Comparatively, a short tenor will increase the EMIs but reduce the interest outgo. Thereby allowing better opportunities for savings.
These are certain pointers that a potential house renovation loan applicant must understand. It is recommended to evaluate the total expenses to make an informed loan application.
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